Friday, December 10, 2010
Effect of the minimum wage inflation
Fair Labor Standards Act (doctor), originally adopted in 1939, covers employment as the medical and let family numbers overtime policies and the minimum wage. EDF administered by the U.s. Department of labor, who has power to define and to increase the minimum wage. The severity of the effect of minimum wage inflation is connected to the amount of the increase in the speed and the economic climate. Price IncreaseRaising minimum wage increases the cost of hand of work in certain sectors, including the food sectors whose workers, cashiers, workers are farm, traditionally paid the minimum wage. This extra work labour costs must be absorbed by companies, and many are turning to the increase of in prices. According to the Handbook of labor economics, 1999, inflation of 10% minimum wage would increase prices of foodstuffs by four percent and causes all a 0.4% increase in costs for insurance goods.Health option of CoverageAnother, to absorb the minimum wage inflation, reduce health insurance. A 2005 study by Colin Baker of Harvard University shows that the employer sponsored health insurance falls 4% at the minimum wage increases sometimes by 20 percent.Disadvantaged WorkersIn, less desirable workers for employers may increase a minimum wage. Young people and especially young minority who have no work experience faster or have the same productivity as older workers are not considered valuable enough to pay the minimum wage. People who have disabilities a productivity have can be also or no cut low prices, which of the minimum wage inflation.Fluctuating WageWhile minimum value mount angestelltechte Ant of the minimum wage rose enacted since 1939, the value of the Mindestlohns compared to the costs which were substantially fluctuated. For people who try to earn a living on minimum wage, salary, these changes can be problematic. The intellectual c.a.salaire is made relatively standard, but the standard of living of minimum wage changes. From view employer great hikes on the minimum wage which suddenly need can be made to adapt to inflation labor dramatically.Indexed WageIncreasing minimum increase the minimum wage at a set rate per year is called indexing the minimum wage. The minimum wage established for indexing Florida, Washington, Oregon, and Vermont policies. There is no inflation result measured in Washington and Oregon, who supports indexing the minimum wage for the longest.